Monthly Magazine Feb 1999

Abu Dhabi's non-oil trade is witnessing tremendous change in all aspects. Not only the volume of trade is increasing, but also there is a big transformation in the direction and the regions targeted. The figures released by the Abu Dhabi Customs Department for the month of December 1998 show that the trading partnership is not confined to any single country. There is also big shift in the region with which Abu Dhabi is conducting is trade.

Europe is emerging as the top trading region, a shift away from the United States and Japan, which were on top of the trading list during the last few months. Italy topped the list of countries from where Abu Dhabi is importing its goods. The last few months ended with US making its efforts to remain on top and Japan making valiant attempt to climb on to the top.

The month of December also saw that the volume of imports and exports increasing from the same month in 1997 while re-exports recording a fall mainly due to a big decline in re-exports to Saudi Arabia, though the Kingdom remained on top of the list.

Imports during the month increased 40 per cent in the month of December 1998 to Dh 1,907.95 million from Dh 1,349.41 million during the same month in the previous year, whereas exports went up by nearly 50 per cent to Dh 51.21 million from Dh 33.31 million. At the same time, re-exports declined slightly to Dh 70.77 million from Dh 76.97 million.

Surprise Entry

A close look at the import figures will show that there is big shift in the sources of Abu Dhabi's imports. Though it cannot be said there is going to be a long-term re-orientation in the sources, the trend has been in the air for the past few months. Imports from Germany and some other European countries have been registering handsome increases for the last few months.

But the month of December saw Italy coming on to the top from nowhere. Imports from Italy increased by more than 150 per cent to Dh 260.48 million from just Dh 103.55 million, pushing the United States to the fifth position and Japan to the third. Germany emerged to be on the second position. Imports from Germany went up by 30 per cent to Dh. 250.39 million from Dh 180.18 million while imports from Japan increased 120 per cent to Dh 233.90 million from Dh 102.07 million. Saudi Arabia came fourth, though imports from the Kingdom declined to Dh 219.38 million from Dh 230.78 million, followed by the US with an increase of 20 per cent to Dh 163.63 million from Dh 130.33 million.

The other European country which fared well was France by increasing its exports to Abu Dhabi by over 70 per cent to Dh 131.81 million from Dh 73.88 million. The Netherlands and Switzerland were other European countries to figure on the list of top ten importing sources of Abu Dhabi. India is the only Asian country besides Japan to take place on the list. Imports from India increased by over 40 per cent to Dh 37.411 million from Dh 22.50 million.

Machinery, sound recorders, reproducers and their parts occupied the top position among the goods imported by Abu Dhabi during the month review. Its share in the total value of imports reached 34.8 per cent against 30.9 per cent during the same month in the previous year. The total value imports under this head were Dh 664.91 million against Dh 416.82 million in the previous year. The second position was taken by transport vehicles, the share of which in the total imports increased from 11.9 per cent to 18.3 per cent. The total value of imports under t his category increased to Dh 350.06 million from Dh 160.63 million. Ocean ships was the most popular mode of transportation for imports, followed by road and air.

Table (1)
Comparative Summary of prominent countries of IMP and its percentage for the month of December 1998

Qatar's Comeback

Exports during the month posted an increase of over 50 per cent to Dh 51.21 million from Dh 33.31 million. Qatar re-emerged as the top exporting target of Abu Dhabi, followed by the Sultanate of Oman. Surprisingly, Spain figured on the third position on the list. Though Saudi Arabia, Iran and Kuwait figure on the list of top ten countries, exports to these three countries declined during the month under review.

Exports to Qatar increased by 370 per cent to Dh 9.52 million in the month of December 1998 from Dh 2 million in the corresponding month in 1997. Exports to Oman also registered a handsome increase of 110 per cent to Dh 7.70 million from Dh 3.52 million. Spain came third with an export of Dh 6.74 million, though comparable figures of the same month in the previous year were not available.

5.88 million during the month against a paltry total of Dh 435,270. India has been emerging as one of the most important trading partners of Abu Dhabi for the last several months. India has been figuring on the list of top ten countries in all the three categories of trade - imports, exports and re-exports.

Surprisingly, exports to Iran made a nosedive during the month under review. It fell from Dh 12.02 million to a paltry Dh 861,753. The fall works out to be 90 per cent. Exports to Kuwait declined by 20 per cent to Dh 647,768 from Dh 921,588 and to Saudi Arabia by 10 per cent to Dh 4.72 million from Dh 5.42 million. The declines to these three countries were more than made up by big increases in exports to Qatar, Oman, Spain and India.

Base metals and articles made from them, machinery, sound recorders and foodstuffs and beverages constituted the main items of exports during the month. Base metals and their products occupied the first position with a share of 27.2 per cent of the total value though its exports declined to Dh 13.92 million from Dh 15.11 million. Machinery, sound recorders and their parts occupied the second position with a share of 17.9 per cent of the total value followed by food and beverages with a share of 16.3 per cent.

Sea route, as usual, was the most popular mode of transport for exports, followed by surface transportation and air.India continued to be one of the main export targets of Abu Dhabi. India imported goods worth Dh

Table (2)
Comparative Summary of prominent countries of REX and its percentage for the month of December 1998

Big Decline

Re-exports of Abu Dhabi declined to Dh 70.77 million in December 1998 from Dh 76.97 million during the same month in 1997 mainly because re-exports to Saudi Arabia declined by more than 50 per cent though the Kingdom figures on the top of the list on re-exporting countries. The situation would have been very precarious, if there were no big increases in re-exports to Iran, the Netherlands, Belgium and the United States.

Re-exports to Saudi Arabia declined to Dh 10.21 million from Dh 23.11 million, although the Kingdom figured on the top of the list of ten. The Netherlands came on the second on the list with a total of Dh 8.41 million against Dh 5.19 million during the same month in 1997.

Re-exports to Iran posted a handsome increase to Dh 6.68 million from Dh 2.17 million. Belgium a recorded an increase of 350 per cent to Dh 5.03 million from Dh 1.09 million. A striking increase was in re-exports to the United States, which went up to Dh 4.27 million from a meager sum of Dh 942,782. There was a big decline in re-exports to 'other countries' category to Dh 19.70 million from Dh 31.18 million.Machinery, sound recorders and their parts figured on top of the items of re-exports, taking a share of 37.6 per cent of the total value at Dh 26.60 million. The figures during the corresponding month in the previous year were 22 per cent and Dh 16.94 million. Transportation vehicles took the second position with 28.2 per cent share of the total re-exports at Dh 19.94 million. But this category took big dive from 42.9 per cent share of the total re-exports at Dh 33.02 million.


Table (3) Comparative Summary of prominent countries of EXP and its percentage for the month of December 1998